Most people are fairly indifferent about their bank account. Which is a mistake, really, since the right account can help you immensely during hard times. Especially if you’re dealing with financial conditions that threaten to deny you the opportunity to meet some of your most basic financial needs and goals, at least knowing that your money is at the best possible place can be a great source of support. One of the most typical situations can arise after taking on a mortgage. If you should feel pressured by your bank and be unsure about whether or not you will be able to re-pay the loan, the worst possible thing, meanwhile, is to avoid facing up to your problems. Instead, you should start looking for solutions straight away.
Rekindling Of the Repayment Plan
There are some steps that you can take in order to be on the safe side. The most important aspect of all is to see eye to eye with the bank in formulating a concrete solution and then showing full compliance after both sides have agreed to one. One possible idea is a rejuvenation of the repayment plan, which can entail the bank allowing you to make payment of the past debts as a lump sum after a certain amount of time has elapsed. This is a process that may be tricky to deal with, but can certainly be worth the effort.
Adjustment of the Mortgage Plan
The bank can also, in close co-operation with you, decide to make some changes with regards to the terms of the loan agreement. By making some subtle tweaks, you may be able to pay back the mortgage loan after all and thereby avoid having to enter individual insolvency. In such a case, the bank may even consider eliminating or at least considerably improving some terms that were outlined in the original mortgage plan. Ultimately, the bank has the authority to decide on which options to modify. They might decide to lower the interest rates or extend the term of the loan for some couple of years, for example. Or they may decide to add the past arrears to the current loan balance. Whatever they come up with, however, they will need to take your concerns, needs and financial capacities into consideration as well, since it will eventually be you who’ll have to carry the consequences of the new deal.
Obtain Mortgage Insurance
It may be hard to believe that one can acquire a loan without paying back with interest. And yet, it is possible. If you’ve taken out a mortgage insurance, you stand a far better chance of obtaining a loan from the guarantor without being charged the interest. There are some fees that are incurred through this whole process, but as with the option of rekindling your payment plan, they’re worth it. After all, nothing beats the feeling of knowing that you’re safe from a foreclosure.
As you’ll have gathered from these information, a good and personal contact with your bank is essential for the success of your mission. You can start with making a good impression by taking out a guaranteed bank account instead of your current account. These accounts do not offer overdrafts, which is a clear sign for your creditors that you intend to live more frugally and meet your financial requirements in the future. In some cases, it can even help repair your credit rating. Which only goes to show, again, that the last thing you should do is remain indifferent about which bank account to go for – after all, they really can make a difference.
This article was written by William Masters in association with eccount money, a leading service provider of online bank accounts. Liverpool-born William Masters is known as one of the more unique voices on the scene for finance journalism. Masters lives and works in London.